Eight months after the landmark Supreme Court ruling granting financial autonomy to Nigeria’s 774 local government areas (LGAs), the federal government has hit a major snag. According to the Office of the Accountant General of the Federation (OAGF), 749 LGAs have failed to submit their account details, a critical requirement for the direct payment of allocations. This delay has raised questions about the implementation of the July 11, 2024, judgment, which aimed to empower LGAs by freeing them from state government control.
The Core Issue: Missing Account Details
The Federation Account Allocation Committee (FAAC) Technical Sub-Committee recently revealed that only Delta State’s 25 LGAs have provided the necessary account details for direct payments. This lack of compliance has stalled the process, leaving the majority of LGAs unable to access their funds independently.
The OAGF, led by Accountant General Oluwatoyin Madein, highlighted the challenges in identifying democratically elected LGAs, a prerequisite for the direct allocation of funds. “A system was set to be implemented, but the initial challenge was in determining which local government councils had constitutionally elected chairmen,” Madein explained. She added that the process is further complicated by the need to establish mechanisms to ensure that funds reach the rightful recipients.
Collaboration with the Attorney General’s Office
To address these setbacks, the OAGF has begun consultations with the Office of the Attorney General of the Federation. The goal is to develop a clear framework for submitting account details and ensuring compliance with the Supreme Court’s ruling. However, progress has been slow, and the timeline for full implementation remains uncertain.
CBN’s Role in Ensuring Accountability
The Central Bank of Nigeria (CBN) has also stepped in to support the process by profiling LGA chairmen and signatories to their bank accounts. This move, part of the Know Your Customer (KYC) protocol, aims to ensure financial accountability and transparency. According to CBN’s Director of Legal Services, Kofo Salam-Alada, the profiling process is ongoing, and the bank is collaborating with the AGF’s office to streamline the procedure.
However, the Association of Local Governments of Nigeria (ALGON) claims it has not been formally notified about the CBN’s efforts. Chinesu Ekeke, ALGON Chairman in Abia State, stated, “We have not been invited for signatory verification. I am just hearing it now.” This communication gap has further complicated the implementation process.
Concerns from Local Government Employees
The National Union of Local Government Employees (NULGE) has expressed concerns that state governors may be undermining the autonomy process. NULGE has warned the CBN against aiding governors in maintaining control over LGA funds, emphasizing the need for transparency and adherence to the Supreme Court’s ruling.
The Supreme Court’s Landmark Ruling
The July 11, 2024, Supreme Court judgment was a historic step toward decentralizing power in Nigeria. The court affirmed the financial autonomy of LGAs, prohibiting state governors from controlling their funds and directing the Accountant General of the Federation to make direct payments to LGA accounts. However, the lack of progress in implementing the ruling has left many questioning the commitment to true local government autonomy.
What’s Next?
The federal government faces mounting pressure to resolve the issues delaying the implementation of LGA autonomy. With only Delta State complying so far, urgent action is needed to ensure that the remaining 749 LGAs submit their account details and meet the requirements for direct payments. The collaboration between the OAGF, AGF, and CBN will be crucial in overcoming these challenges and fulfilling the promise of local government empowerment.
